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2026 DAILYLAW 3543 (BOM)

A A GARG AND COMPANY v. HUSSAIN AHMED PARPIA

CARAP/393/2026 · 2026-08-17

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Judgment text

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION [ COMMERCIAL DIVISION ] COMMERCIAL ARBITRATION APPLICATION NO.393 OF 2026 A.A. Garg and Company .. Applicant Vs. Hussain Ahmed Parpia .. Respondent Ms. Sonia Sunil, Advocate for the Applicant. None for the Respondent. CORAM : GAUTAM A. ANKHAD, J. DATE : 17th August, 2026. P.C. : 1. This Section 11 Application is filed seeking appointment of the sole Arbitrator in relation to the disputes that have arisen under the Employment Agreement dated 17th July, 2023 (“Agreement”) executed between the parties. The arbitration agreement between the parties is recorded at Clause No.18.2, the relevant portion of which reads as under:- “18. DISPUTE RESOLUTION 18.2 VALIDITY /IMPLEMENTATION 18.2.1. In the event of a dispute arising in connection with the validity, interpretation, implementation of this Agreement, either Party may refer the dispute for resolution to a sole arbitrator or in case of disagreement in the appointment of the arbitrator, to three arbitrators, of which each Party shall nominate one and the third arbitrator shall be 1/5 3-CARAP-393-2026.doc Dixit appointed by the said two arbitrators. The arbitration proceedings shall take place in Mumbai, India in accordance with the provisions of the Arbitration and Conciliation Act, 1996, as amended from time to time. All proceedings in any such arbitration shall be conducted in English. The arbitration award shall be final and binding on the parties and the parties agree to be bound thereby and to act accordingly. 19. GOVERNING LAW This Agreement shall be governed by laws of India. It is agreed by both parties, the Courts of Mumbai shall have exclusive jurisdiction in respect of all matters relating to or arising out of this Agreement.” 2. The learned counsel appearing for the Applicant-Company submits that the Respondent was in the Company’s employment from 11th July, 2023 to 25th March, 2025. The Respondent resigned from the employment, which resignation was accepted on 16th April, 2025. The Respondent’s last working day was 30th April, 2025. It is stated that the Respondent has approached several customers and previous employees of the Applicant-Company and has attempted to poach customers, employees and the business of the Applicant in breach of the Agreement. In these circumstances, the Applicant addressed legal notice dated 22nd May, 2025 calling upon the Respondent to immediately cease and desist from approaching the Applicant’s clients and employees failing which legal recourse would be taken against the Respondent. There was no response to this notice. Consequently, on 6th August, 2025, the Applicant has 2/5 3-CARAP-393-2026.doc Dixit invoked arbitration under the Agreement. Once again there is no response to the invocation notice. 3. The learned counsel for the Applicant-Company tenders an affidavit-of- service dated 17th August, 2026 to demonstrate that the Application has been served on the Respondent. The said affidavit is taken on record and marked ‘X’ for identification. 4. No one appears for the Respondent despite service. The record demonstrates that the parties have executed the Employment Agreement. The Applicant has invoked arbitration by its Advocate’s notice dated 22nd May, 2025 which notice has been received by the Respondent. The acknowledgment receipt is at pages 73 to 75 of the paper-book. At this stage, this Court is only required to examine whether an arbitration agreement exists between the parties and whether arbitration has been validly invoked. I am satisfied that there exists a valid arbitration agreement in the Employment Agreement and the same has been validly invoked on 22nd May, 2025. Hence, this Application is allowed in terms of the following order:- [A]. Ms. Sneha Phene, learned Advocate of this Court is hereby appointed as the sole Arbitrator to adjudicate upon the 3/5 3-CARAP-393-2026.doc Dixit disputes and differences between the parties arising out of and in connection with Employment Agreement referred to above. The contact details of Ms. Sneha Phene, the sole Arbitrator, are as under: Office Address : 317B, New Bake House, Maharashtra Chamber of Commerce Lane, Kala Ghoda, Mumbai – 400 001 Mobile Number : 9821889233, E-mail ID : phene.sneha@gmail.com” [B]. A copy of this order will be communicated to the learned Arbitrator by the Advocate for the Applicant within a period of one week from the date on which this order is uploaded on the website of this Court. The Applicant shall provide the contact and communication particulars of the parties to the Arbitral Tribunal along with a copy of this order; [C]. The learned Arbitrator is requested to forward the statutory Statement of Disclosure under Section 11(8) read with Section 12(1) of the Act to the Advocate for the Applicant so as to enable them to file the same in the Registry of this 4/5 3-CARAP-393-2026.doc Dixit Court. The Registry of this Court shall retain the said Statement on the file of this Arbitration Application and a copy of the same shall be furnished by the Advocate for the Applicant to the Respondents; [D]. The parties shall appear before the learned Arbitrator on such date either on V.C. mode or at such place as indicated to obtain appropriate directions with regard to conduct of the arbitration including fixing schedule for pleadings, examination of witnesses, schedule of hearings etc. [E]. The fees of the learned Arbitrator shall be as per the Fourth Schedule of the Act read with the Bombay High Court (Fee Payable to Arbitrators) Rules, 2018. [F]. All issues, claims and counterclaims are kept open to be agitated before the Tribunal. [G]. The arbitration shall be held at Mumbai. [ GAUTAM A. ANKHAD, J. ] 5/5 3-CARAP-393-2026.doc Dixit SNEHA ABHAY DIXIT Digitally signed by SNEHA ABHAY DIXIT Date: 2026.08.18 10:49:01 +0530